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HomeMy WebLinkAbout1998-10-21 Council MinutesAGENDA } KENAI CITY COUNCIL -REGULAR MEETING OCTOBER 21, 1998 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci.kenai.ak.us/ ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. CERTIFICATION OF OCTOBER 6, 1998 CITY OF KENAI ELECTION 4. Agenda Approval 5. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1797-98 -- Removing the Current KMC 14.20.150 and Replacing it With a New KMC 14.20.150 that is Compatible With Recent Changes in the Land Use Table and Which Provides for Closer Scrutiny of the Effects of Each Conditional Use Permit. 2. Ordinance No. 1798-98 -- Appropriating $45,000 in the Senior Citizen - Borough Grant Fund for the Purchase of a Handicap -Accessible Vehicle. 3. Ordinance No. 1799-98 -- Amending the Kenai Municipal Code, Chapter 6.05 by Adding Section 6.05.145 Entitled, "Absentee Voting in Person." 4. Ordinance No. 1800-98 -- Amending KMC 6.05 to Allow and Set Procedures for Special Elections By Mail By Adding Subsections 6.05.300 Through 6.05.340. 5. Ordinance No. 1801-98 -- Appropriating $113,000 for Improvements at Cunningham Park. 6. Ordinance No. 1802-98 -- Removing From the Kenai Municipal Code the Word "Advisory" From the Names of the Harbor and Library Commissions and Deleting the Name "Advisory" From Certain references to the Planning & Zoning Commission. 7. Resolution No. 98-74 -- Adopting the City of Kenai, Alaska 1999-2000 Capital Improvement Project (CIP) Priority List for Request of State Grants. 8. Resolution No. 98-75 -- Awarding the Bid to Kachemak Electric, Inc. for the Kenai Recreation Center Fire Alarm System ADA Upgrade - 1998 for the Total Amount of $26,244. 9. Resolution No. 98-76 -- Supporting a Joint Venture Effort of the City of Kenai and the Alaska Department of Parks & Outdoor Recreation in Developing a Wayside Park at Birch Island. ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board C. Kenai Visitors & Convention Bureau Board d. Alaska Municipal League Report ITEM E: MINUTES 1. *Regular Meeting of October 7, 1998. ITEM F: CORRESPONDENCE 1. *R.Ross Memorandum regarding dates the revised airport development contract will be submitted to Council and Airport Commission. ITEM G: OLD BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. Approval -- Change Order No. 7/Alaska Regional Fire Training Center Alcan General, Inc./$66,787.00 4. Discussion -- Proposed Library Addition Fundraising Strategy ITEM I: ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING ' OCTOBER 21, 1998 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htty : / f vwwv. ci . ken ai . ak. u s MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:02 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2, ROLL CALL Roll was taken by the City Clerk. Present were: Bookey, Swarner, Moore, Bannock, Smalley and Williams. Absent was: Measles l A-3. CERTIFICATION OF OCTOBER 6, 1998 CITY OF KENAI IMT W%^PPT 0%1kT Clerk Freas reported the following information: CITY OF KENAI REGULAR ELECTION OF OCTOBER 6, 1998 WE, the members of the Kenai City Council, do hereby certify the results of a canvass of the ballots for the Regular Election of October 6, 1998. FOR MAYOR: WILLIAMS, JOHN J. 552 WRITE-INS 58 FOR CITY COUNCIL: BOOKEY, JAMES C., III 468 MOORE, JOE 464 KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 2 WRITE-INS 53 *********************************************************************************************** SPOILED BALLOTS: ABSENTEE BALLOTS RECEIVED: (In person, Personal Representative, Mailed) QUESTIONED BALLOTS RECEIVED: MOTION: 0 ABSENTEE BALLOTS COUNTED: 66 QUESTIONED BALLOTS COUNTED: 5 67 POLL VOTER TURNOUT: 613 TOTAL VOTER TURNOUT: 684 10 REGISTERED VOTERS: 4,728 % VOTER TURNOUT: 15% Councilman Smalley MOVED to certify the City of Kenai Regular Election of October 6, 1998 and Councilwoman Swarner SECONDED the motion. Councilman Smalley requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, A-5. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD TO: C-8, Resolution No. 98-75 -- 10 / 19 / 98 Brian D . Miller Letter, Arctic Lights Electric, protesting the bid process for the award of the Recreation enter fire alarm system upgrade bid to Kachemak Electric, Inc. SUBSTITUTE: H-2, Purchase Orders Over $2,500 -- Substitute includes amount for purchase order to Tundra Communications of $4,776 and adds a purchase order to Charlotte's Inc. for ARFF catering. REMOVE: H-4, Discussion -- Proposed Library Fundraising Strategy (discussion will be held at a future meeting). MOTION: Councilman Smalley MOVED for approval of the agenda as amended and requested UNANIMOUS CONSENT. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. A-6. CONSENT AGENDA Mayor reported he had no changes to the Consent Agenda. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 3 MOTION: Councilman Smalley MOVED for approval of the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS -- None. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1797-98 -- Removing the Current KMC 14.20.150 and Replacing it With a New KMC 14.20.150 that is Compatible With Recent Changes in the Land Use Table and Which Provides for Closer Scrutiny of the Effects of Each Conditional Use Permit. MOTION: Councilman Smalley MOVED for adoption of Ordinance No. 1797-98 and Councilman Moore SECONDED the motion. Mayor Williams asked permission to have council speak to the ordinance and then take the matter back to the public for comments. Councilman Smalley explained the information in the ordinance had been discussed at three Planning & Zoning Commission meetings and it received public testimony at each. Some of the concerns stated by the public were that changes to the ordinance would make acquiring a conditional use permit easier and an application would not receive as much scrutiny. Smalley continued, he believed the city addressed those issues as well as the Commission. Williams asked what the Commission's overall feeling was of the final document. Smalley answered, the Commission had mixed feelings as to what was being changed and why. Debbie Sonberg -- Sonberg stated she was more comfortable with the wording changes suggested by the Planning 8. Zoning Commission. She added, she was not sure why wording was used from the Seward Land Use Table as it was significantly different than Kenai's, i.e. more like Kenai's used to be with an added statement that blanks were not permitted. She suggested Kenai research back going into what the Borough had as it would be found the city's was constructed directly related to what was listed as conditional and permitted with the permitted receiving P's, conditional receiving C's and there was nothing put in for the blanks because it was assumed they were not permitted. Sonberg added, she felt the bigger issue was the Land Use Table. However, some of the wording changes made to the ordinance before them made the rest of them feel KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 4 more comfortable. Williams asked Sonberg if she were to apply for a conditional use permit after the ordinance was effective, what would be her comfort level with the ordinance (knowing she would have to comply with and adhere to the rules developed in the ordinance) . Sonberg answered, she felt someone applying would have the same battle she and her neighbors went through in the past. She added, she didn't really think the ordinance would fix anything and the residents would be just as frustrated as her group was as well as the applicants. She continued, part of the problem was the application process where the applicant is supposed to bear the burden of proof, but there is nothing in the application process that clearly spells out how they meet guidelines. She suggested the application process be investigated more thoroughly and potential permit applicants and residents together with city administration help develop a new application process as it may ease the overall process. Williams stated the city was faced with a real dilemma in the platting requirement in regard to encroachments and easements. As it is now, the process is cumbersome. The city ouncil went through a long period of time when there were no safety checks and guards and it all came to light during the 80's crash. There were many encroachments needing conditional use permits. Williams added, the concern was how to write an ordinance strong enough to be workable, but lenient enough to please everyone. Sonberg stated it was more the whole package than the ordinance as areas have been fixed. She added, she was not sure how recently the whole ordinance had been reviewed and was not sure a situation like the one affecting her neighborhood could be avoided for either the applicant or residents. Moore asked Sonberg to give her suggestions of what could be done with the Land Use Table. Sonberg answered, similar to what she suggested with the application process. She added, she didn't think the public understood what was going on when the land use table was being changed. Advertisements on a specific issue do not give enough information. Before studying the city's zoning, a land use table to her was a statistical table of land uses. She added, she didn't think the public was aware every zone had been changed. Williams asked Sonberg if she felt comfortable enough with this document to move it in as an ordinance with other repairs to be made to the ordinance in the future. Sonberg answered, if it was the council's focus and goal, she thought it okay. Vesta Leigh -- Referred to her letter that was attached to the ordinance document. Leigh stated she didn't see any change of language that would give the citizens of the city a better chance of knowing when someone has applied for a conditional use permit. She suggested signs be placed on the applicant's property in order for neighbors and residents outside of the 300' radius to be better informed. She added, she did not feel the 300' radius requirement of notice is enough. She requested her suggestion be addressed. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 5 Leigh referred to 14.21.050 which refers to what the applicant has to do before the Commission. During her neighborhood's concerns in January/ February, she continued, the applicant did not describe the building, height, stories, width, etc. She stated, she believed if an applicant is to give descriptive information regarding the building to be built, the applicant should have to offer that information. She added, she did feel the ordinance was a better step than what the ordinance required prior to the changes made. Williams referred to Leigh's suggestion of a sign placed on the applicant's property. He noted there are vinyl signs available at a nominal fee. He asked, how the public or applicants might feel if they had to post a sign on their property for 30 days in order to advise the citizens of their application for a conditional use permit. Attorney Graves reported there were a number of communities in Washington and California that require a sign. Most of the communities on the Kenai Peninsula require the 300' radius notice as Kenai requires. Graves added, he could develop an ordinance to require a conditional use permit applicant to post a sign for two weeks or thirty days for introduction at the next council meeting. Swarner stated she felt that would be a good idea, however the problem she saw was in a subdivision with not many residents, there was no guarantee the sign would be seen. However, the certified notice would also be sent. Leigh suggested size of letters should also be specified. Swarner requested an ordinance be prepared. Williams agreed and requested the local sign companies be contacted to investigate pricing that may affect the applicants. Graves stated it was the administration's thought that if an ordinance be enacted, the city would make the signs available for the applicant. This would ensure one type of sign is used, pursuant to the city's standard for size and lettering. He added, there are companies from which these signs can be purchased for this type of use. Moore asked if the ordinance would delineate what information should be included on the sign. He noted, he did not want to see a sign that said "conditional use permit applied for" as no one will know for what matter the application has been requested. He added, he would like the sign to include wording, "contact City Hall." Graves stated, their thought was the sign would provide the location, applicant, the general nature of the application and notation for further information, "Please contact City of Kenai Planning & Zoning Department." If someone requests further information, a copy of the application can be provided. Smalley reported in Long Beach, Washington an affidavit from the city is posted on a property (a power pole, etc.) for which an application has been made along with the city's phone number. He added, he would like the city to post the sign in order to be sure the posting has been completed. Smalley noted, he supported an ordinance to that effect. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 6 Bannock referred back to Ordinance No. 1797-98 and stated, while he agreed with Sonberg the ordinance did not necessarily answer a problem, he disagreed the problem was with the Land Use Table. He used as an example, D(1) "the use is consistent with the purpose of this chapter and the purposes and intent of the zoning district." Bannock stated, there was no conceivable way a conditional use permit could be passed for a gravel pit in any type of residential area with that requirement in the ordinance. He continued, the city was faced with a dilemma: either eliminate the possibility of a gravel pit in a residential area from the Land Use Table (which would create an interesting situation since most of the gravel pits in Kenai are in a residential area), or allow the ordinance to stand as it is. He added, the council was trying to make the rules of a conditional use permit so that everyone moving into a residential neighborhood could be assured only another residence can move into the neighborhood. However, the Comprehensive Plan and Land Use Table may something different. Bannock continued when the debate opened on this document, he believed the goal was to eliminate the conflict between the code, Comprehensive Plan and the Land Use Table. He added, the ordinance before them did not do that and he would not support the ordinance. Bannock noted, he recognized the flaws of the ordinance now in place, he didn't believe this would fix the problem. Williams stated, the question remained, how extensive of an overhaul would be needed to fix the system using this ordinance and the upcoming ordinance regarding notification and how the whole issue could be addressed to develop a better overall planning program. Bannock suggested, if an overhaul is required, it would not be possible without looking at all three documents simultaneously (Comprehensive Plan, conditional use code, and Land Use Table) so all can be developed in harmony with each other. Williams suggested going forward with passage of Ordinance No. 1797-98 and during upcoming budget hearings, address the issue of additional funding for the Planning & Zoning Commission to use a professional consultant to help them review the code, Comprehensive Plan and Land Use Table. Moore stated he thought that would be an excellent approach. Bookey agreed and added, he believed all three documents have to be addressed at the same time as Bannock stated. Williams requested administration to include funding within next year's budget for an overhaul of the Planning 8v Zoning code, Comprehensive Plan and Land Use Table (including funding to hire a consultant to work with the Planning &Zoning Commission to do the work). VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: No Smalley: Yes Williams: Yes KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 7 MOTION PASSED. Graves asked if it was council's intention to forward the ordinance regarding conditional use permit application notification by signs to the Planning & Zoning Commission first. Answer was yes. C-2. Ordinance No. 1798-98 -- Appropriating $45,000 in the Senior Citizen - Borough Grant Fund for the Purchase of a Handicap -Accessible Vehicle. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1798-98 and Councilman Smalley SECONDED the motion. There were no public comments. Williams noted the ordinance stated $35,000 of Senior Center fund balance would be offset by a grant of $10,000 (if awarded) and any donations received. Swarner added, the $35,000 was in the Borough's unencumbered fund balance. Moore noted, he understood $10,000 would come from the Senior Connection and $35,000 would be from the Senior Center fund balance, which would be offset by the grant (if awarded) and any donations received. He questioned the grant "if awarded." Acting Senior Director Kelso explained, the Center submitted a grant proposal to the Rasmussen Foundation and if received, the amount could be for approximately $6,000. If this funding is received, it would go toward the $35,000 so that not all of the fund balance would be used. Moore noted, the ordinance would increase the unencumbered fund balance to cover the total cost of the van. Kelso answered yes. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-3. Ordinance No. 1799-98 -- Amending the Kenai Municipal Code, Chapter 6.05 by Adding Section 6.05.145 Entitled, "Absentee Voting in Person." MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1799-98 and Councilman Moore SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 8 There were no public or council comments. Clerk Freas explained, the ordinance added instructions for absentee balloting to the Kenai Municipal Code. The instructions were not anything different than what was already done, but only included the information into the code. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-4. Ordinance No. 1800-98 -- Amending KMC 6.05 to Allow and Set Procedures for Special Elections By Mail By Adding Subsections 6.05.300 Through 6.05.340. MOTION: Councilman Smalley MOVED for adoption of Ordinance No. 1800-98 and Councilwoman Swarner SECONDED the motion. Clerk Freas explained, the ordinance would add information into the code to allow the City of Kenai to have the ability to hold special elections by mail. Ballots would be mailed out to all the registered voters within the city if council determined this to be the avenue they wanted to take for a special election. She noted, the Borough had been holding elections by mail for several years for special and service area elections and had great success. Freas added, with the initiative that came forward (with no petitions returned) several weeks ago, it would have given the city another vehicle in order not to have an election at which there would be poor voter activity, but expenses would be incurred. There were no public comments. Williams stated he would not vote in favor of the ordinance because he felt it was the responsibility of the voter to go to the polls to vote. He added, before doing a mail -in election, he would want the Division of Elections to purge the voter list to better identify the voters are in the area. Also, he was concerned with the wording regarding witnessing of ballot return envelopes. He noted, the wording did not delineate whether the witnesses were city residents, registered voters, from another country or state, etc. He asked if this should also be addressed in the ordinance. Freas explained, in absentee balloting by mail, the envelopes must be witnessed for the city, state and borough. This allows people who are in another state to be able to vote an absentee ballot. It would be doubtful the person would have someone from the City of Kenai available to witness the envelope. Williams stated, he was looking for an attempt for someone to abuse the system in some way. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 9 Bannock asked Freas if the ordinance was essentially the same as what the Borough had on their books. Freas answered, yes. Bannock asked, would the code change be used only for special elections. Freas answered, yes. Bannock asked how many special elections the city had held in the past 20 years. Freas answered, approximately two. Williams stated that could be more of reason not to include the ordinance in the code. Bannock stated he believed it might be better to have it on the books so that if the need for special election arises, it would cost less to hold the election by mail and easier for a write-in for a special election. He added, he didn't believe the city would hold a special election by mail if the matter was a $5 million bond issue. However, there may be times a special election may be required. Bannock stated, for special election purposes, he felt this would be excellent to have in the code should the need arise. Williams stated, the cost of democracy is being ever diligent in your watch and would not support the ordinance. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: No MOTION PASSED, C-5. Ordinance No. 1801-98 -- Appropriating $113,000 for Improvements at Cunningham Park. MOTION. Councilman Bannock MOVED for the approval of Ordinance No. 1801-98 and Councilman Bookey SECONDED the motion. There were no public comments. Williams noted the total cost of the proposed improvements would be $100,000 and the $13,000 would pay for the engineering and administrative costs for the project. Moore asked what the project would entail. Public Works Manager Kornelis explained they were investigating bank stabilization, a boardwalk and improvements to the existing boat ramp. He added, for a second phase, they were investigating the upgrade of the parking lot, but if that was done, it would be a separate project. Kornelis also noted, the boardwalk would be wooden and would be placed in front of the city's one lot. Kornelis added, the Kenai River Classic had a subcommittee who would be involved with the planning and development of the plans. Swarner stated she was concerned costs often escalate on projects such as this. Bookey asked if the $13,000 the city was appropriating with the ordinance was in - kind donations or actual cash. Kornelis answered, $12,000 would be for costs for KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 10 outside engineering. The remaining $1,000 will cover administrative costs, i.e. plan reproduction, advertising, etc. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-6., Ordinance No. 1802-98 -- Removing From the Kenai Municipal Code the Word "Advisory" From the Names of the Harbor and Library Commissions and Deleting the Name "Advisory" From Certain references to the Planning & Zoning Commission. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1802-98 and Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-7. Resolution No. 98-74 -- Adopting the City of Kenai, Alaska 1999-2000 Capital Improvement Project (CIP) Priority List for Request of State Grants. MOTION: Councilman Bookey MOVED for adoption of Resolution No. 98-74 and Councilman Smalley SECONDED the motion. There were no public comments. Williams informed the public the city was requesting state funding for road development ($2.5 million), design of a new maintenance shop ($1 million), offsetting and mitigating problems caused by the dipnet fishery ($1 million), and for remodeling City Hall after the Public Health Nurses move to their new building ($500,000). KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 11 Moore questioned whether the south side of the river was included in the dipnet fishery funding request. Kornelis explained, the cost for the south side project would be approximately $800,000. It was not included because a request had been submitted to the Exxon Valdez Oil Spill Foundation (EVOS) for grant funds. Swarner asked if an answer had been received from EVOS in regard to the request for funds for the south side of the river. Kornelis answered, he received a letter recently and they suggested the city consider applying for another grant for a study of the dipnet fishery problems. This would be funding for a study, not as a construction project. Swarner stated, she felt the south side of the river also needed to be addressed. Although the city was hoping to receive grant funds to be used on the south side, it was important the south side of the river be included in the future plan. Moore asked if access and parking could be added to the list and what affect it would have on the list. Bookey stated he had no problem putting a program together for the south side dipnet fishery, but during their last discussions, council had agreed on this list. He added, he would be hesitant to add anything to this list that might affect the city's chances of receiving EVOS funding. Bookey continued, he believed the city had a better chance of receiving EVOS funding for the south side than receiving funds from the state for the north side. Smalley agreed, he believed that was what their discussion included in making the list so the EVOS project funds would not be jeopardized. Smalley added, he would support not adding funds for the south side. He continued, if a study needed to be done, one could be done, but work could continue to be done on the south side. He agreed, this item needed continuing attention. Williams noted, the Salamatof Native Association was actively pursuing access to the beach from the Borough. He added, he was not sure if that will affect plans the city had with EVOS. Kornelis explained, that was discussed during the hearing he attended. He noted, the present access was on a section line easement, north of Salamatof s proposed road to the beach. He added, there would be no change; people would be getting onto the beach further south and would still travel up the beach. The problems with vehicles driving on the dunes and private property, etc. would continue. Kornelis added, the letter he received from EVOS suggesting the city submit a grant application to cover costs of a study suggested the study include both sides of the river (how to handle the dipnet fishery and the people) . Moore stated, if the city is relying on EVOS to handle concerns regarding the south side of the river, he felt the city should shut the south side down for a season. That would get some reaction from those who wanted to fish and action beyond a study may be received from EVOS. He added, he didn't believe there would be any action on the south side if the city agreed to a study. Moore continued, he didn't oppose not adding the item to the list, but didn't want the south side ignored and rely on a study to answer the problems there. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 12 Smalley stated, he didn't think the city had the authority to shut the fishery down on the south side as it was a public beach. He added, he didn't have opposition to Moore's idea, but felt it would be difficult to do. Moore agreed and added, there were high tide and private property issues at question which could be enforced. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-81 Resolution No. 98-75 -- Awarding the Bid to Kachemak Electric, Inc. for the Kenai Recreation Center Fire Alarm System ADA Upgrade - 1998 for the Total Amount of $26,244. MOTION: Councilman Bannock MOVED for approval of Resolution No. 98-75 and Councilman Bookey SECONDED the motion. There were no public comments. Acting City Manager Semmens reported, he, Attorney Graves, Building Official Springer, and. City Engineer La Shot met and discussed the letter distributed to council and added to the agenda at the beginning of the meeting. (The letter was an obj ection from Arctic Lights Electric, protesting the bid process for the award of the Recreation Center fire alarm system upgrade bid to Kachemak Electric, Inc.) . Semmens continued, relevant statutes were researched and felt the resolution presented was fine and that the concerns stated in the letter were addressed because the low bidder did have the required licenses and permits or had a subcontractor lined up who did have the licenses and permits. Semmens added, they also felt the bid process was in order. Moore stated, the issues raised in Arctic Lights' letter were very serious accusations. He added, he would rely on administration's opinion that everything was above board. He questioned the fact that Kachemak Electric was using an outside engineer/ company to provide the required certification process on the system. He asked if that information was submitted with the original bid and if not or if so, how would that affect the awarding of the bid. Semmens explained, the city requested the appropriate licenses, etc. Received was a copy of the electrical contractor's license which was what they understood was needed. Later it was determined there was another permit needed. That permit was produced via a subcontractor. Administration felt that was adequate, even though that particular item may not have been included in the original bid. Semmens KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 13 continued, from time to time, there are items inadvertently omitted from bids, but if the item can be produced timely, administration feels it is in the best interest of the city not to throw out a bid for that kind of a technical infraction of the bid process. Moore asked if the bid then would be considered responsive instead of non- responsive. Semmens answered, correct. Mark Cialek - Kachemak Electric. Cialek stated, the bid process required the licensing and he provided it. State regulations for installation of fire alarm systems, the electrical administration license (which he submitted) was needed. To certify the system they needed to be under the "supervision of and they were which also could be produced. Cialek added, he had been through the same process with the State DOT on several projects and the licensing had not failed as far as the state was concerned. Also, he had corresponded with the State Fire Marshall and had passed all state regulations. Cialek added, he had done certifications both in the City of Kenai and the City of Soldotna and they passed. As far as the credentials and licensing, it had been established for many years. He continued, he produced the forms requested in the bid process. Bannock referred to the letter from Arctic Lights Electric and requested clarification in regard to the bid of the project. He noted, it appeared the city requested bids for the project twice. According to Mr. Miller (Arctic Lights Electric), they were the low bidder the first time but the project was over budget. The city then requested a rebid using a more expensive system. Bannock asked if the project was rebid because the city was over budget and did the city rebid something more expensive than originally rebid. City Engineer La Shot explained, the first bid had specified a zone -type system. The second bid reflected a different addressable -type system. Originally, they believed there would be a great difference in material costs for the two systems. Later, they found the cost difference was not that great and for ease of maintenance they felt the second system would be best. At that time, the city put the project back out to bid. Bannock asked if La Shot agreed the system was more expensive or less expensive. La Shot answered, administration was led to believe the material costs would be less than $2,000 additional which was at what the second bid came in. He added, one bid increased and one decreased and the order of the bids changed. Bannock asked if it was true the Building Official claimed the project was over budget. La Shot answered, in speaking with the Building Official, he didn't believe that was the reason for rebidding. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 14 C-9. Resolution No. 98-76 -- Supporting a Joint Venture Effort of the City of Kenai and the Alaska Department of Parks 8v Outdoor Recreation in Developing a Wayside Park at Birch Island. MOTION: Councilman Smalley MOVED for approval of Resolution No. 98-76 and Councilman Moore SECONDED the motion. There were no public comments. Williams reported he had secured letters of support from principals of four local schools in regard to using such a park as a student trip destination for historical and anthropological review. Letters had also been received from Alan Boraas, Kenai Chamber of Commerce and the Kenai Visitors & Cultural Center. The letters have been forwarded to Mr. Tolley at DOT. Williams stated he would also write a letter to the Kenaitze Indian Tribe (KIT) to inform them of the proposed activities and ask them for their comments. Bookey stated he was glad Williams would notify KIT because council had previously promised they would advise KIT of any future projects within the city that may affect their heritage. Bookey stated he would vote in favor of the resolution. VOTE: Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. BREAK TAKEN: 8:14 P.M. BACK TO ORDER: 8:29 P.M. ITEM D: COMMISSION / COMMITTEE REPORTS D-1. Council on Aging -- Councilwoman Swarner reported Kelhe Kelso had been hired as the new Senior Center Director and would begin work in that capacity November 19, 1998. Kelso stated she was excited to have the opportunity to serve as the director of the Senior Center. Council congratulated her on her new position. D-2. Airport Commission -- No report. (The Ross memorandum, included at F-1 on the consent agenda was acknowledged. Copies were available for the public.) KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 15 D-3. Harbor Commission -- Bookey reported a meeting was held on October 12. At the meeting it was reported the dock was closed and the floats pulled for the winter. Also, the Commission discussed enlarging the boardwalk at the duck flats and asked if it would be possible to include that project with the Birch Island project. Williams stated it would be doubtful as the cutoff date for inclusion on the project list was October 12. However, the project could be included on the next list which would be developed in two years. Williams noted an error at Page 2, paragraph 5 -- Peter's Marsh should be Potters' Marsh. Clerk Freas noted the Harbor Commission had requested to change their November meeting from November 9 to November 2 due to expected absences. Council had no objections. D-4. Library Commission -- Councilman Moore reported the minutes of the last meeting were included in the packet. He reminded council and members of the audience, the Friends of the Library still had tickets to sell to their fund raiser. The Commission's next meeting would be held November 3. The Commission was still needing a student representative. Smalley stated he would pass the information on to the High School. He also suggested the school be advised and request a notice be included in the school paper. Williams reported he would be visiting the government classes on November 16 and will pass the information on as well. Moore also reported the library would be closed from November 19 through December 7 during painting and installation of new carpet. Williams referred to a rough draft of information regarding developing an RFP to hire a fund raiser consultant in regard to the proposed library expansion which was included in the packet. Williams stated, he spoke with a member of the Commission and made some suggestions. The Commission would like to delay discussing the matter until budget time because they would be requesting seed money from the city. The Commission was also requesting to have help from City Attorney Graves and administration in developing the RFP and job description. Williams added, more than half of the money to hire the consultant would come from donations from the Friends of the Library and other sources. There were no objections to including this discussion in the budget preparation work sessions. D-5. Parks & Recreation Commission -- Councilman Bannock reported the next meeting would be held November 5. Director Frates reported a few members of the Commission toured the city parks, including the new student representative. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 16 They discussed what was done this year and the plans for the various parks for next year. D-6. Planning & Zoning Commission -- Councilman Bannock reported for Councilman Smalley the Commission met on October 14. At the meeting, the Stiers Home Occupation Permit was reviewed. Public testimony was taken. The permit was approved. Bannock added, one of the neighbors inquired about the appeal process. Clerk Freas reported no appeal had been received to date. Bannock also reported the junk car ordinance was discussed. The matter will return for public hearing. It was noted the Commission's first meeting in November would fall on Veterans' Day. The Commission requested council to cancel the meeting. There were no objections from council. Swarner questioned where Triple T Autobody was located. Bannock answered, on Beaver Loop Road. Bannock added, both Triple T and Peek -a -Boo Daycare had applied for Home Occupation Permits which would be before the Commission for public hearing at their next meeting. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Councilwoman Swarner reported the Committee met on October 13. During the meeting, they requested their meetings of November and December be cancelled (which is done yearly) and they reconvene in January. Council had no objections to the request. Swarner added, if any of the audience or council had suggestions for flowers for next summer, please contact her, Frates, or a member of the Committee. D-7b. Historic District Board -- Councilman Moore reported the next meeting was scheduled for October 26. He noted, one of the members had informed administration she would not be able to attend the meeting which would mean there would not be a quorum unless council appointed a new member. Council referred to the applications in the packet and noted Mike Huhndorf had recently been a member of the Board and had a desire to be reappointed. Williams stated his desire to reappoint Huhndorf. There were no obj ections from council. D-7c. Kenai Visitors 8a Convention Bureau Board -- Councilman Bookey reported the next meeting was scheduled for November 18. D-7e. Alaska Municipal League Report -- Councilman Smalley reported there was no meeting held since his last report. Smalley reminded council the AML Conference would begin on November 6 in Fairbanks. ITEM E: MINUTES KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 17 E-1. Regular Meeting of October 7, 1998. Approved by consent agenda. ITEM F: CORRESPONDENCE F-1. R.Ross Memorandum regarding dates the revised airport development contract will be submitted to Council and Airport Commission. Item was included on consent agenda. Williams noted, the contract would be back before the Airport Commission at their November 12 meeting and council would formally address the contract at their November 18 meeting. ITEM G: OLD BUSINESS -- None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Smalley MOVED to pay the bills and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 MOTION: Councilman Smalley MOVED for approval of Substitute H-2 and Councilwoman Swarner SECONDED the motion. Clerk Freas reported the amount of the purchase order to the caterer for the ARFF grand opening was only a portion of the money budgeted for the celebration. At this time, the activity matter was under budget. VOTE: There were no objections. SO ORDERED. H-3. Approval -- Change Order No. 7/Alaska Regional Fire Training Center - Alcan General, Inc./$66,787.00 KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 18 Williams requested council review and act on each portion of the change order separately. Tim Orthmeyer -- Morrison-Maierle, Inc. Orthmeyer recommended approval of the change order. He continued, issues surfaced during the project. Some were previously denied, however Alcan General decided to pursue them with Morrison- Maierle and the city in order to support the subcontractors. There were several negotiated settlements he wanted to identify which involved approximately $40,000 in costs. Item No. 1: Additional Snow Melt Tubing Costs. Orthmeyer explained, between the time the project was bid and the time the materials were ordered, the supplier sold out to another company and that company would not honor the original quotes. Morrison-Maierle fully supported the requested increase costs of $17,377. The FAA had agreed and verbally approved the funding as an eligible cost on the project. Orthmeyer added, they felt it was something beyond the control of the contractor. The city portion of cost would be $543.00. Item No. 2: Effluent Building Electrical Equipment. Orthmeyer explained, Morrison-Maierle came to the conclusion from their discussions with Alcan, they would support the increased costs for this equipment. He added, they felt the information may not have been clearly identified on the electrical drawings, but felt they were defined on the mechanical drawings. They believe it was more of a coordination issue. FAA has also agreed to approve the additional costs. City cost would be $465.00. Item No. 3: Acoustic Sound Panels. Orthmeyer explained, this item had been discussed to a great extent between the contractor and supplier. Morrison-Maierle denied their claim and requested the panels be replaced. In order to do this, the situation lent to a situation where the end result after the replacement of panels could be of poor quality again and the contractor would again ask for reimbursement on the whole amount ($15,000). In an effort to come to an agreement, Morrison- Maierle felt if they agreed to split the cost and the contractor would do the best job possible in replacing the panels, everyone would come out ahead. Orthmeyer added, the cost increase was $7,500. The FAA agreed to participate in the cost. The city's cost would be $234.00. Orthmeyer explained, this was one of the items which was negotiated and they felt it would be in the best interest of all parties to come to an agreement on the replacement of the item. Item No. 4: Concrete Floor Cupping and Curling. Orthmeyer explained, the pouring of the concrete in cold weather didn't allow for good protection of the concrete. Morrison-Maierle felt the contractor could have done a better job as the contractor had experience in pouring concrete in the winter. He added, this was another negotiated settlement to which Alcan had agreed. The actual cost was approximately $21,000 to correct the curling at the joints of the concrete. The KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 19 settlement cost Alcan agreed to was $8,57 1. The FAA did not agree to include this item in the eligibility part of the project. The $8,571 would be a full cost to the city. Item No. 5: Equipment Shelter Roof. Orthmeyer explained, this item was basically a communication problem between Morrison-Maierle and the contractor. A detail was shown on the drawing, but perhaps was not properly referenced. During construction, Morrison-Maierle was asked to provide an interpretation of the drawings and in doing so, gave the contractor the wrong elevations. Morrison- Maierle allowed the contractor to proceed with the work because it was a time and scheduling issue with Symtron in getting the equipment installed. They discussed the matter with City Engineer La Shot and agreed Morrison-Maierle would pay the costs if it would not be approved by anyone else. FAA agreed to participate in the cost of the item and the cost to the city would be $498.00. Item No. 6: Relocating the Air Compressor. Orthmeyer explained, during design it was decided to place the air compressor in an open area on the mezzanine level in the apparatus bay area. When classes began, it was decided having the compressor there was too noisy and it was relocated into the mechanical room. FAA denied participation in this extra cost. Cost to the city would be 100% or $2,513.00. Orthmeyer continued, the overall cost of the change order to the city would be $12,521 and Morrison-Maierle recommended approval of the change order. Swarner asked if all the items were completed before council was requested to approve the change orders. Orthmeyer answered, that was correct. Semmens pointed out, some of the items were not a typical type of change order council would normally expect to have an opportunity to approve in advance. Semmens continued, Item No. 1 would not be an item that could be brought to council in advance to request approval of the change. There were several of the items that were not the type to receive pre -approval. Moore stated he believed Item No. 1 would be something that could have come to council for pre -approval due to the time between the award of the bid and the notice to proceed was issued. Williams noted Item No. 1 had been discussed extensively between the contractor, engineer, subcontractor, and city. He added, they were trying to clean up the remnants of change orders on the books. Williams asked Semmens if the $12,521 would be appropriated from the Airport Fund. Semmens answered, yes, the funding for the project came from the Airport Special Revenue Fund and adequate funds remained in the contingency of the project. No additional appropriation would be required. A budget transfer would be required to the construction account. Williams stated his concern of the equipment shelter room because of the miscommunication regarding the concrete block wall and lowering of the roof which caused a drastic modification to the project. Williams asked who was at fault. Orthmeyer answered, a drawing in the drawing package identified the building KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 20 heights. The elevation shown and structural details did not clearly identify the elevation needed. When the contractor started to put this together, he called a member of Morrison-Maierle's staff who gave them the wrong elevation. Orthmeyer added, in essence Morrison-Maierle gave the wrong information and the responsibility falls on them. Continuing, Orthmeyer stated, Morrison- M aierle were prepared to absorb the costs in regard to this item if necessary. Since FAA was willing to share in the cost, they would be willing to share in the local costs. Bookey stated he could probably go along with all of the items in the change order except Item No. 4. He continued, it seemed this should have been a situation that was understood when the concrete work was begun in the middle of the winter. Bookey added, he would not support Item No. 4. Bannock stated, he was disappointed in that none of the items had changed since last discussed. He added, he didn't consider Items 2 through 6 any changes, but catch -ups. Bannock stated he would vote no on the change order. Williams noted, if council approved the change order, the costs would be covered on a 93/7 basis with FAA. He added, he thought Item No. 4 should be paid because the city requested a fast -tracked project and the contractor was trying to stay out of the weather and continue pouring the concrete. There was a lot of labor in the grinding of the floors, etc. to smooth the floors and ready them for tiling. There were all local subcontractors working on this item. MOTION: Councilman Bookey MOVED to pay all the change orders except Item No. 4. Councilman Moore SECONDED the motion. Bookey stated, unless there would be mitigating circumstances explained to him, he would vote in favor of the motion. Orthmeyer explained, the concrete curling issue was one his company denied, Kluge & Associates denied, and Wm. Nelson & Associates denied since the very beginning. Because Alcan General still felt it was a legitimate claim, they negotiated with Alcan. Morrison-Maierle agreed to bring the $8,571 forward for council's consideration. Orthmeyer added, Alcan had incurred approximately $21,000 for this item. Swarner stated she did not support the motion because she did not support change orders coming after the fact. Purnal Whitehead -- Stated the concrete work was based on a risk factor the contractor took. The concrete contractor was trying to get a jump start on the project, but got caught with weather (which is the risk factor). He continued, they had to proceed on some items (electrical equipment) and couldn't stop to get approval from the council. Not all the costs were available and that was why the items were after the fact. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 21 Semmens reported, including this change order, there was approximately $32 1,000 in positive change orders added to the project, a $122,000.20 negative change order, and approximately $198,000 in change orders. Semmens continued, of the $321,000, $254,000 was grant eligible and approximately $67,000 (including this change order) was the amount the FAA chose not to participate in; and $37,000 of the $67,000 was a change order relating only to the ESI portion of the building. Williams noted from the information Semmens gave, $198,000 was actual payments in change orders of an $8 Million project or 2%. Semmens added, the project began with approximately $300,000 in contingency. Prior to this change order there was $117,000 in the contingency account. If the entire change order was approved, there would be approximately $50,000 left in the contingency account. Bannock stated, to be fair, the $100,000 was not actually cost savings, but was the reduction in cost of the audio/visual equipment. Fire Chief Elson explained, in the beginning a proposed budget was presented to council that included a $400,000 audio/visual system. At that time, that price was deemed too high and denied. Subsequently, a figure of approximately $220,000 was presented, which was close to the actual cost. He added, he didn't think the $400,000 was ever used as part of the actual budget for the project. Williams encouraged council to strongly consider approval of the whole change order. VOTE: Bookey: Yes Swarner: No Moore: Yes Measles: Absent Bannock: No Smalley: No Williams: Yes The vote was three yes and three no. MOTION FAILED. Orthmeyer explained, through the whole course of the project, they were fortunate to have Alcan General as the contractor. They were very professional, they absorbed a lot of costs they didn't bring forward, the project was one of the best managed he had seen, and the quality of work reflected the high quality end product the city received. Orthmeyer added, a large number of changes were owner -requested, i.e. the well system, etc. involving approximately $147,000. If the audio/visual system was not included, there was approximately $50,000 additional costs from change orders. Orthmeyer stated, Alcan and their subcontractors were very fair throughout the whole project. It was a very complicated and unusual project. Some parts of the project were new to the subcontractors. In fairness to the contractors on a number of the issues, was why they are supporting the change order. He added, Alcan General is one of the best contractors, in his experience, with which Morrison- Maierle has worked. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 22 Bookey asked why FAA said no on the concrete. Orthmeyer answered, they basically felt the contractor being from Anchorage and having done a lot of work in Alaska, should have known better how to deal with working in cold weather conditions. Bookey stated he totally agreed and that was one of the reasons he would not support that item. Councilman Bannock offered a motion to approve the change orders, Items 1 and 2 but no second was received. Williams stated, all the work was done by local subcontractors and in cold weather. He continued, the amount of money spent on propane to keep the project going was above the $21,000 the contractor actually claimed the concrete work cost him. Williams added, he would vote to approve all the items. Swarner asked when the concrete was poured. Orthmeyer answered, in January. Swarner stated she probably would have supported the item if it had been brought to council at the time. She added, she objected to bringing the request forward after so many months had passed and after the work was completed Norm Kaas -- Norm's Plumbing & Heating. Kaas stated, he was on the project from the beginning to the end and Alcan General was one of the best contractors with which he had worked. He added, the subcontractor doing the concrete was from Soldotna. The weather in which he did the work included wind, rain and snow. The subcontractor spent far more money for cold weather protection than he had in his budget and never asked for additional reimbursement. Kaas added, if he remembered correctly, the problem with the concrete was discovered some time after the concrete was poured. It wasn't until they began laying the linoleum and carpeting the problem was discovered and this was why it took so long to bring it to council. Kaas continued, during the project he heard there were less change orders brought to council on this project than many of the projects the city has done in the past. The project was complex and Alcan used all local contractors that were qualified to do the work. That was what the council, city and community wanted. When looking at the overall costs of change orders against the total cost of the project, he believed it was small. Williams requested Orthmeyer to define the difference between claims and change orders. Orthmeyer explained, a change order is when something is not accounted for in the plan and a change needs to be made. A cost quote is then received for the contractor to provide the services. A claim may be submitted when work is done to meet the schedule, even though approval had not been received from project management. Orthmeyer noted, the concrete subcontractor could have chosen not to pour the concrete in December/January and waited until when the weather was more favorable, however the subcontractor was committed to meeting the project schedule and it cost extra to do it. Continuing, Orthmeyer stated, the subcontractor could have done the pour for less money if he had waited, however, he would then KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 23 have been fighting the schedule at the end of the project. In reality, the subcontractor completed his work two or three months in advance. Orthmeyer added, some of the items before council were costs involved when the subcontractor went ahead with work at their own cost and filed a claim later in the project, stating they felt they were entitled to the extra costs. Orthmeyer pointed out, the sound panels and concrete claims were negotiated in an effort to come to a conclusion of the project without going to litigation, etc. The subcontractors were offering to make a settlement on the items in order to complete the project. The negotiations of the settlements took several months. Orthmeyer added, FAA felt most of the items before council were legitimate claims and have agreed to support payments (sound panels, etc.) in an effort to complete the project. Semmens stated, from a financial perspective, the amount of change orders was very minimal for a project this large. He added, his personal experience had been that sometimes general contractors will get a bid with the intent to bring significant claims at the end of the project. Semmens added, it was the administration's recommendation that all the items be approved. He continued, he spoke with City Manager Ross prior to his leaving town and they discussed the change order requests. Ross had no objections to the approval of all the items and pointed out that with FAA participation in the majority of the items and that the money will be going to local contractors, should add weight in the decision. Bookey stated he concurred except for the one FAA did not approve. City Engineer La Shot stated, when the city -requested items were removed (well @ $147,000, support of the ESI structural trainer @ $137,000), the percentage of change orders to this large project was impressive. He added, he was instrumental in getting the project pulled together and saw the first four items discussed back and forth, some from almost the beginning of the project. Based on the project manual, the first four items could be denied, however in his experience, when there is an argument that stays with the project for a long time, there is some merit to the requests. La Shot noted, they waited intentionally to get a good knowledge of the budget before bringing the items to conclusion. They met with Mr. Fike of Alcan and was impressed Fike was concerned to have the cost of the subcontractors covered. Most of the money involved in the change order would go to subcontractors. MOTION: Councilman Smalley MOVED to approve Change Order No. 7 as submitted. Councilman Moore SECONDED the motion. Smalley explained, council had discussed each item of the change order individually. From the beginning the project was fast -tracked by council. He believed this was a situation where the contractor attempted to meet the city's request. It was a KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 24 tremendous boost to the local economy. The facility would continue to be a boost to the local economy. Smalley continued, he felt more comfortable after hearing the discussion, presentations and the city's position stated at this meeting. When the city fast -tracks a project with this magnitude, he added, he felt the city accepts some responsibilities. Two percent or less is a very low amount. Smalley stated he would support the motion and encouraged council to do so as well. Williams stated he agreed with La Shot's statement that an argument that survived to the end of the project had merit. He added, he would support the motion. Councilman Moore asked if this would be the last possible change order. Williams answered no. Williams noted, the funds to pay the costs would be from the project balance. No additional funds would be taken from the Airport Fund to cover these costs. Orthmeyer stated, they did not foresee any more major change orders, as far as the contractor's perspective. However, there may be some items the city may want to add to the project. It was their understanding Alcan General had no other outstanding issues to bring forward and Morrison- M aierle saw no others related to Alcan General and the overall part of the project. Swarner asked if any unexplained change order items had already been purchased. Williams answered, no. Moore asked, if this change order was denied, could the items come back on a future change order. Williams stated he would hesitate to do that in order to find out what the residual funds would be to determine whether several clean-up projects could be done with the remaining funds (additional paving in front of the bay doors to keep gravel and dirt from being carried into the building on the heated concrete floor) . Moore suggested the matter be tabled until the next meeting when there would be a full council. Williams stated he was hesitant to do that and felt the change order should be dealt with because months were taken to prepare the document, etc. Smalley stated, council was looking at the potential of a three/three vote which would be a no vote and the issue would gone. He added, the matter could be resolved at a meeting with a full council. Orthmeyer stated they would like to see the project come to a close as would the contractor. From their perspective, they would like to begin on project close-out paperwork. He added, there would be some seeding and clean-up that would be completed next spring. This change order embodied the major issues. AT EASE: 9 :41 P.M. BACK TO ORDER: 9:50 P.M. Alan Poynor -- 509 Ash Avenue. Poynor stated he had never worked on a project of this magnitude, but on small projects. On his company's projects, they automatically build in a ten percent contingency and are happy when they stay KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 25 under. Poynor urged council, since the funds would go to local contractors and in order to support local contractors, to pay the change order. Williams reported there had been three local contractors who bid on the concrete work and two bowed out when finding out the risk in the cold weather concrete work. He added, with the contractor taking the risk and doing the concrete work early, the project was completed about three months sooner. The additional cost of $8,000 would probably have been offset by the cold weather work that would have been done by Norm's Plumbing, Jahrig Electric, etc. With that in mind, the completion of the project could have been pushed to February of 1999. Williams added, this was a cheap way to get out from under a fast -tracked project that would have cost a lot more if the contract had been delayed. Bookey stated, he felt there was some merit to Williams' statement, however he would not support Item #4 because it had been denied by the FAA, Kluge 8. Associates, and Nelson & Associates. He added, his concern was the merit of the request. Bookey noted, as a contractor and he had been on the other side of the table with similar matters. If the subcontractor had been in the audience to discuss the matter with council, it may have made a difference. MOTION TO AMEND: Councilman Bookey MOVED to amend the motion to approve the change order less Item No. 4. Councilman Moore SECONDED the motion. VOTE: Bookey: Yes Swarner: No Moore: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: No Vote was four yes, two no. MOTION PASSED. Bannock stated he appreciated Poynor's comments in regard to costs. He added, he would have liked there to be a better name for the requests than "change orders" (he looks at change orders as something actually changing the plans, something being removed, actually differing from the original) . Bannock added, he wished what they were voting on was a direct appropriation from the contingency fund. He asked, if the change order passed, would the monies come from the contingency fund. Semmens answered, all the money for the change order would come from the contingency fund and on the revenue side, the FAA would participate at the end of the project through an allowance for change orders up to 15% of the project (which the project will be under) through additional grant funds for those items they identified in which to participate. Semmens added, there will be a budget transfer in the amount of the change order to the construction account. Approximately $49,000 will be then left in the contingency account. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 26 VOTE ON AMENDED MOTION: Bookey: Yes Measles: Absent Williams: No Swarner: No Moore: Yes Bannock: Yes Smalley: Yes Vote was four yes, two no. MOTION PASSED. Orthmeyer stated, on behalf of Morrison-Maierle, he thanked council for their being a part of the city's project. He commended the city on proceeding with the project and were confident of the project's success. Orthmeyer also thanked the city staff as they were very professional, supportive and helpful throughout the project. They were second to none. This had been a very enjoyable project for him. Williams stated it had been a pleasure working with Morrison-Maierle as well. Williams asked if council decided to do additional paving at the ARFF, would FAA participate in the costs. Orthmeyer stated additional parking at the building may be favorable to FAA, but without presenting it to them, it would be hard to say. Williams noted there is a parking problem at the building because they were unaware there would be as much of a need as it turned out. However, he was talking about additional paving from the bays. He added, he believed 30 to 40 feet of additional paving would be needed there. For additional parking, additional land would be required from the University. Williams requested administration to determine what funds are left after the whole project is completed as well as existing needs for the project and see if additional paving could fit into that program. H-4. Discussion -- Proposed Library Addition Fundraising Strategy Removed from the agenda. ITEM I: I-11 Mayor ADMINISTRATION REPORTS a. Economic Development Administration Discussion -- Williams reported Bernie Richert (EDA) visited Kenai recently and reminded him through others that EDA would have liked to have participated in one of the city's recent projects. Williams requested council's permission to continue discussions with Mr. Richert in regard to possible funding for either the ARFF or as a grant to the Challenger Learning Center. Williams added, EDA's participation would depend on what the congressional delegation may be able to do in regard to funding for building KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 27 a warm storage building and hose tower for the ARFF as well as acquiring additional land (from the University) for the ARFF. Bookey stated he would like to head in that direction, but preferred being more favorable to the ARFF program than the Challenger project if there was a choice. Williams added, he would speak to the congressional delegation first. b. Public Opinion Survey -- Some suggestions were given in the updating of the Survey document: 1. Questions 2 & 3: Are redundant. 2. Question 17: Add Beautification (flowers) 3. Question 24: List all of the city parks individually; include the Senior Center; ski trails; and tent campground (there was some hesitation to include tent campground since the residents of Kenai will be receiving the survey and it is doubtful they are users of the campground.) Council was reminded, the survey would be a discussion item at the November 4 meeting and was asked to bring any additional suggestions to that meeting for discussion/ review. Moore noted the Library Commission requested to include some questions on the survey in direct regard to the library. They will be preparing questions during their next meeting. C. FAA Football Field -- Williams questioned the placement of "Pop Warner Football" signs which had been placed at the FAA football fields. Parks 8s Recreation Director Frates explained, the Pop Warner Association wanted to place some sponsorship signs, however they did not receive approval prior to placing the signs. Frates added, the issue was being handled and the signs should have been removed. Frates continued, discussion still needs to take place with the Association in regard to approval of placement and whether they will be seasonal signs. Williams suggested a specific area where the signs will be placed be selected. Bookey suggested the construction and setting of the signs be specified, i.e. size, level, square, etc. Administration was requested to report back to council in regard to the signs at the November 4 meeting. d. Five Iron Heights Land Sale -- Attorney Graves reported approximately 20 information packets have been taken out from City Hall. There were also packets available at the Library. No bids had yet been submitted. The bid deadline is November 3. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 28 I-2, City Manager -- Acting City Manager Semmens reported they were pleased with the choice for the new Senior Center Director. He added, City Manager Ross would be back to work on Monday. I-3, Attorney -- No report. I-4. City Clerk -- Clerk Freas noted there had been 14 people who absentee balloted on October 19 and reminded council and audience absentee balloting was available up to the November 3 election in the council chambers or at the Borough building. I-5. Finance Director -- Semmens referred to the Quarterly Investment Report included in the packet. He cautioned, bond yields were dropping drastically and he added, he was not ready to make projections as to how this would affect the city's revenues. Semmens also reported the new IBM AS 400 computer was installed and the conversion was going well. I-6, Public Works -- No report. I-7, Airport Manager -- No report. ITEM J: DISCUSSION J-11 Citizens Debbie Sonberg -- 410 Cinderella Street. Sonberg noted the following: a. she enjoyed the flowers throughout the city during the summer and appreciated the efforts of the Beautification Committee; b. would get an application for the Student Representative to the Library Commission from the internet; c. she gets excellent road service and would like the information passed on to the appropriate individuals; d. thanked City Clerk Freas for the meeting calendar. Williams noted the ARFF grand opening would be open to the public at 4:00 p.m. on Friday, October 23. Everyone was invited. J-2. Council Bookey -- No comments. KENAI CITY COUNCIL MEETING MINUTES OCTOBER 21, 1998 PAGE 29 Swarner -- Thanked administration for the float plane basin information included in the packet. She noted, from July 1992 to June 30, 1998, $13,991.07 was received in float plane rental fees and construction cost was $1.6 million. Moore -- Asked if the pavement break on First Avenue would be paved prior to winter. Kornelis explained that it would not be paved until spring as the asphalt plant contractor had already put his machinery away for the winter. The area was too big for the city's equipment to pave. Bannock -- Thanked Tim Orthmeyer and Purnal Whitehead for attending the meeting, as well as Norm Kaas. He added, he appreciated the local hire issue and the economic spin garnered from the project. Smalley -- Also thanked Orthmeyer and Whitehead for their involvement in the project. Smalley also reminded council and mayor to review the draft AML Policy Statement. He encouraged them to bring comments and suggestions to the AML Conference in Fairbanks where it will be finalized. Airport Manager Atha stated he calculated it may take a century to pay off the capital expense for the float plane basin from user fees. However, he believed a lot could be done with the facility and it could be aggressively advertised, etc. He encouraged council not to give up on the facility. Swarner stated she supported the marketing of the facility, but was not interested in putting more money into it. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 10:26 p.m. Minutes transcribed and,submitted by: 0-<"JKrf4e41-/ t-PPV.0VED BY COUNCIL Carol L. Freas, City Clerk DATE ry n. � 1 FZ^TA igo! . ,1 CIO,